Caitlyn Purchases and Places in Service Property Costing $450,000 in 2016

question 19

Multiple Choice

Caitlyn purchases and places in service property costing $450,000 in 2016. She wants to elect the maximum Sec. 179 deduction allowed. The property does not qualify for bonus depreciation. Her business income is $400,000. What is the amount of her allowable Sec. 179 deduction and carryover, if any?

• A) \[\begin{array} { | l | l | }
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline \$ 500,000 & 0 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline \$ 450,000 & 0 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline \$ 400,000 & \$ 50,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline \$ 400,000 & \$ 100,000 \\
• \hline
• \end{array}\]

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